Laying Off Employees
Laying off employees is something that most business owners will need to do at some stage. Even if the employee concerned has given you enormous grief it generally isn't the most pleasant experience. But if you prepare yourself well and know your obligations before you start then the termination process will be less painful for all involved. When you are faced with firing employees you should take a few factors into account. The above factors will have a bearing on the termination process and on the employee's rights in termination.
Common Reasons For Employee LayoffsThe reasons for laying off employees usually falls into one or more of the following categories:
Employee Rights In TerminationThe basis of a persons employment can effect their entitlements payable on termination. Generally speaking, if the person is a casual or employed for a specific period under an employee contract then the financial outlay will not be as great as if you were terminating a permanent employee with many years service. Click here for more information on the types of employment categories. This will take you to the Award Wages page. Scroll half way down the page and you will see a list of employment categories and descriptions. BE AWARE!Be careful that if terminating a 'casual' employee that they are a genuine casual staff member. This term is extremely mis-understood in business. Many employees termed as 'casual' are actually long term and/or permanent employees. If it comes down to a legal dispute between an owner and an employee the courts and the Departments will look at the true basis of the persons employment and not just their designation. How To Fire An Employee
If your staff member is (or should have been) covered under a State or Federal Award or workplace agreement you will be required to pay them any entitlements due as per that Award. If the employee being laid off has only been with you for a short period of time then in most cases you will not be required to pay them a 'termination' payment as such. Please see note below.
NOTE!However any employees that are laid off are entitled to payment for any unpaid hours worked and any allowances due. You also need to pay any unused leave entitlements such as annual leave. You must also provide a payslip which outlines in full the details of the final payment made. For more information on the termination process visit the Federal Workplace Authority or Industrial Relations Australia.Federal Workplace Authority V Industrial Relations Department - Who Does What?Organisations that are a constitutional corporation (Pty Ltd) or a company incorporated (Pty Ltd) work under the conditions of a Federal Award or Agreement. These awards and agreements are administered by the Federal Workplace Authority.The Industrial Relations Department covers sole trader and partnership operations. If you have staff and are operating as a either of these legal structures than the Industrial Relations Department in your State will be able to assist you with any specific questions. Their Australia wide number is 1300 766 700.
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